The world of energy is filled with many acronyms and terms which do not always make sense when you first see them. We’ve put together a quick “Jargon Buster” of some of the most commonly used terms and acronyms.
You may have already come across some of these terms and acronyms from your energy bills and invoices.
If you feel that we have missed any terms or acronyms from this list, please feel free to get in touch with us at marketing@consultus.group.
AAHEDC – Assistance for Areas with High Electricity Distribution Costs. These costs were introduced by the Government to reduce the distribution costs to consumers in the North of Scotland.
AMP – Actively Managed Purchasing. This is a flexible purchasing product, solely owned by Consultus and was the idea of our founder, Bernard Messore.
AMR – Automatic Meter Reading, or AMR, is the term given to a system that provides automatic meter readings remotely, without the need for a physical visit. Such systems use mobile telephone technology to transfer consumption data, facilitating accurate billing for business users. Consumption is recorded every 30 minutes.
AQ or AAQ – Annual Quantity. The annual quantity of gas consumed measured in kilowatt hours (kWh).
ASC – Also known as Agreed Capacity (see below), Available Supply Capacity (ASC) is the agreed electrical load of a single given property, as established by the Distribution Network Operator (DNO).
ATT – Air Tightness Testing. a process in which the building envelope is tested to quantify the air tightness.
Active Power – Refers to the rate at which power is produced or transferred using electrical energy. Active power rate is measured in kW and MW.
Agreed Capacity – Refers to the amount of electrical load supplied to a property, as agreed with the local Distribution Network Operator and specified in the energy contract.
Air Source Heat Pump – An air source heat pump, sometimes referred to as an air-to-water source heat pump, transfers heat from the outside air to water, which heats your rooms via radiators or underfloor heating. It can also heat water stored in a hot water cylinder for your hot taps.
Alternative Fuels – Refers to non-conventional fuels derived from natural gas or biomass materials. Ethanol, propane, methanol and compressed natural gas are some examples of alternative fuels.
Anaerobic Digestion – A process through which bacteria breaks down organic matter such as animal manure, wastewater biosolids, and food wastes in the absence of oxygen, and produce resultant biogas.
Absorption Chiller – A closed loop cycle that uses waste heat to provide cooling or refrigeration.
BSUoS – Balancing Services Use of System Charges. Charges that are paid by electricity suppliers based on the energy taken from or supplied to the National Grid system in each half-hour settlement period.
BCM – Billion cubic meters. Large scale units of measurement of gas volume.
BETTA – The British Electricity Trading And Transmission Arrangements, or BETTA, refers to the UK’s single wholesale electricity energy market. Introduced in 2005, BETTA replaced the, now defunct, NETA (New Electricity Trading Agreements) scheme.
BIPV – Building Integrated Photo Voltaic. Solar panels.
Balancing and Settlement – Charges that are collected from end users and paid to suppliers and generators to make sure the network has a balanced electricity supply.
Base Load – Refers to the lowest level at which electricity demand never drops below. For example, if a business’ electricity demand never drops below 300 kVa, the site would have a base load of 300kVa.
Bear Market – A market in which prices generally are declining. An energy trading term. ‘Bearish’
Billing Period – The period of time for which you are charged for using gas and electricity by your business energy supplier.
Biomass – Also known as biofuels or bioenergy, biomass refers to energy obtained from organic matter, either from a specialist plant or indirectly from commercial, industrial or agricultural products. Biomass is considered a carbon neutral energy source, given that the carbon dioxide released during generation is balanced by the CO2 absorbed by plants as they grow.
Broker – A business with the primary function of bringing together the buyers and sellers of energy. Sometimes referred to as a third party intermediary or TPI.
Building Energy Rating – Launched in 2007, the Building Energy Rating (BER) is a form of legislation in which the ventilation and heating requirements of new and existing commercial buildings are judged against a naturally ventilated building benchmark. The rating is displayed on a scale of A to G, with A being the most energy efficient and G the least.
Bull Market – A market in which prices generally are rising, opposite of a bear market. An energy trading term. ‘Bullish’
CaR – Capital at Risk – a flexible purchasing strategy.
CCA – Climate Change Agreements. Voluntary agreements made between UK industry and the Environment Agency to reduce energy use and carbon dioxide (CO2) emissions. In return, operators receive a discount on the Climate Change Levy (CCL), a tax added to electricity and fuel bills.
CfD – The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting low-carbon electricity generation.
CCL – Climate Change Levy (CCL) is designed to encourage energy savings and the reduction of carbon dioxide emissions. The tax is imposed on all UK businesses and applies to the use of certain fuels and electricity in industry, commerce, agriculture and public administration.
CCGT – Combined Cycle Gas Turbine. Electricity generator.
CDD – Cooling Degree Day. A qualitative index used to reflect the demand for energy to cool a business.
CED – Contract End Date
CHP – A technology that produces electricity and thermal energy at high efficiencies using a range of technologies and fuels. With on-site power production, losses are minimized and heat that would otherwise be wasted is applied to facility loads in the form of process heating, steam, hot water, or even chilled water.
CCHP – Combined Cooling Heat and Power. The process by which the heat produced by a Combined Heat and Power (CHP) unit is used to power an absorption chiller or a direct fired chiller.
CHPQA – The CHP Quality Assurance programme (CHPQA) is a government initiative providing a practical, determinate method for assessing all types and sizes of Combined Heat and Power (CHP) schemes throughout the UK. CHP, the simultaneous generation of heat and power in a single process, provides one of the most cost-effective approaches for making carbon savings and plays a crucial role in the UK Climate Change programme.
CM – Capacity Market. A mechanism introduced by the Government to ensure that Electricity supply continues to meet demand as more volatile and unpredictable renewable generation plants come on stream.
COP – Codes of Practice. Details for the technical specification of an Electricity meter. Determined by the Available Supply Capacity and is confirmed at the time the meter is first registered (e.g. COP5, COP10).
COT – Change of Tenancy
COO – Change of Occupancy
COMA – Change of Managing Agent
Calorific Value – The calorific value (CV) is a measurement of the amount of energy contained in the gas. CV is usually quoted in megajoules per cubic metre (MJ/m3). Gas delivered to your premises will have a CV of between 37.5 MJ/m3 and 43.0 MJ/m3.This is continually measured by the gas transporters for each Local Distribution Zone and passed to your gas supplier daily. It is a legal requirement to include the CV on invoices.
Capacity Charge – A charge set by the local Distribution Network Operator (DNO), to cover investment, maintenance and repairs to the network. The charge is dependent on the Agreed Capacity of the property, and can also be called the Availability Charge.
Carbon Offset – is a reduction or removal of emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e). One ton of carbon offset represents the reduction or removal of one ton of carbon dioxide or its equivalent in other greenhouse gases.
Carbon Trading – Carbon trading controls carbon emissions by putting a limit on total emissions from certain activities or sectors. This puts a price on carbon and creates a market whereby participants can trade their carbon allowances. Allowances are initially allocated, perhaps through a free distribution or through an auction. The carbon price provides an economic incentive to reduce emissions and allows for any reductions to take place at the lowest cost across the scheme. The limit on total emissions is adjusted periodically.
Combines Half Hourly (HH) Dat Charge – The cost of collecting and handling data from half hourly (HH) meter readers.
Commodity Charge – A charge levied by National Grid on the quantity of gas transported throughout the network.
Core MPAN – 13 numbers which provide the main part of the meter reference number.
Correction Factor – Used as part of the formula to calculate your gas usage. The volume correction factor is used to consider the temperature, pressure and atmospheric conditions at a property. This factor is typically 1.02264 unless your property has unusual atmospheric conditions.
Daily Contract Quantity – Daily Contract Quantity (DCQ) is the contracted amount of gas supplied daily to a site or to a terminal.
Daily Metered – A large usage Gas meter that has a data logger fitted to record, store and transmit daily readings and measurements.
DM – Daily Meter. Businesses whose annual quantity (consumption) is greater than 58,600,000 kWh (or 2 million therms per annum) must be daily metered. This is a mandatory requirement.
DA/DC – Data Aggregator/Data Collector. An accredited organisation is appointed by an energy supplier (or the client can sign their own contract) to carry out data collection for half hourly AMR metering systems. It’s the DC’s responsibility to retrieve and validate meter reading consumption data, before passing this on to the supplier.
Data Logger – A data logger is a device used to record gas consumption and to transmit meter readings remotely — for more accurate gas billing. Loggers are not just for gas, could be water, electric, heat for example.
Deemed Contract – A contract which applies to a business energy customer at a premises without a signed and written contract for its supply. Deemed contracts will have a default rate for supply.
DEC – A display energy certificate (DEC) shows the energy performance of a building based on its actual annual energy consumption and the CO2 emissions that result from that energy use. A DEC must be accompanied by an advisory report containing recommendations for improvement of the energy performance of the building. The DEC must be renewed every year. The advisory report is valid for seven years.
DN – Distribution Network. (Gas) The operator responsible for the operation and maintenance of the local transmission system. There are currently eight DNs in the UK.
DNO – Distribution Network Operator. (Power) The operator of one of the 14 regional distributors responsible for maintaining the electrical network in the UK. All DNO charges are regulated by Ofgem.
DSM – Demand Side Management.
DSR – Demand Side Response. An arrangement where payments are made to consumers to alter their energy consumption. This is at the request of National Grid.
DUoS – Distribution Use of System (DuoS) Charges – These are the costs associated with the Distribution Network which are levied by the regional Distribution Network Operators.
EA – Environmental Assessment.
EDI – Electronic Data Interchange. The Electronic Data Interchange, or EDI, transfers large quantities of billing data through a secure channel, and gives customers the option to receive their bill in a specific format. This is often used by large organisations looking to integrate their energy billing into their own budgeting system.
EPC – Energy Performance Certificates (EPCs) tell you how energy efficient a building is and give it a rating from A (very efficient) to G (inefficient). They’ll tell you how costly it will be to heat and light your property, and what its carbon dioxide emissions are likely to be. An EPC also includes information on what the energy efficiency rating could be if you made the recommended improvements and highlights cost effective ways to achieve a better rating. EPC’s are valid for 10 years from the date of issue.
Entry Point – The point at which gas is delivered into the National Transmission System, i.e. the gas terminal.
ESOS – ESOS (Energy Savings Opportunity Scheme) is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures.
EAC – Estimated Annual Consumption. This is the estimated electricity that will be consumed on an annual basis.
EUETS – The EU ETS is a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively.
EVCS – Electric Vehicle Charging Stations.
Estimated Meter Reading – Estimated meter readings are done by energy suppliers when they haven’t got an actual meter reading. This bill will reflect the estimated energy consumption for a defined period. By providing regular meter readings, the supplier will bill more accurately.
Exit Zone – A geographical area in which a gas off-take and supply point is located.
Effluent – Water that flows from a sewage treatment plant after it has been treated.
Energy Prosumer – Energy producers and consumers, resulting in a two way or bi-directional flow of energy.
Energy Suppliers – The company who provides energy contracts / billing / customer services etc.
Estimated Read – A “best guess” Meter Read by the Supplier based on historical consumption patterns.
Excess ASC – The amount of KVA used above your authorised level. Penalty charges apply.
FiTs – Feed-in Tariffs. Payments made by FIT licensed electricity suppliers to energy users who generate their own electricity. They are designed to encourage the adoption of renewable energy sources and to help accelerate the move toward grid parity.
Fixed Charge – A charge levied by the energy supplier, which is separate to the standing charge. A fixed charge is normally billed on a daily, monthly or quarterly basis.
Fixed Costs – Pre-determined charges that the Energy Supplier sets to cover costs for the duration of the contract.
Fixed Price Contract – The majority or all costs are confirmed for the duration of the contract term on a given day. Rates do not change so it is great for budget certainty.
Flexible Energy Purchasing – Flexible energy purchasing, whether it be for gas or electricity, gives the customer the option to buy or sell energy at any time — making it possible to take advantage of fluctuations in the wholesale price of gas and electricity.
Fossil Fuels – Fossil fuels are formed from the decomposition of buried carbon-based organisms that died millions of years ago. They create carbon-rich deposits that are extracted and burned for energy. They are non-renewable and currently supply around 80% of the world’s energy. They are also used to make plastic, steel and a huge range of products. There are three types of fossil fuel – coal, oil and gas. The majority of global CO2 emissions come from fossil fuels and industry.
FFL – Fossil Fuel Levy. The Fossil Fuel Levy was introduced to cover the cost of decommissioning nuclear generating plants in the UK. In England and Wales, the levy is set at a rate of 0.3%. In Scotland, where the FFL is referred to as the Scottish Renewable Order (SRO), the rate is set at 0.8%.
FMD – Fuel Mix Disclosure. Launched in March 2005, the Electricity (Fuel Mix Disclosure) Act stipulates that electricity suppliers must provide customers with information on the mix of fuels used to produce the electricity supplied to them. This information, alongside other environmental statistics, is published on a customer’s bill.
FNZ – Future Net Zero.
Gas Day – Gas companies may define the start and end of their “Gas Day” in terms of 06.00 to 06.00, 08.00 to 08.00 or 12.00 to 12.00. This is very important contractually.
Gas Distribution – The transportation of gas through low pressure pipeline network(s).
Gas Substation – A site on a business customer’s premises where gas pressure is reduced from mains pressure to a medium or low pressure for use on site.
GT – Gas Transporter. A Gas Transporter (GT) is responsible for maintaining the gas supply network.
Gas-fired Generation – A third of the UK’s electric power is generated in gas-fired power stations, and the process is considered the most efficient option for large-scale electricity production. Though gas-fired generation does release CO2, the emissions are much lower than burning traditional fossil fuels, like coal.
GW – Giga Watt. A Giga Watt, often represented as GW, is the equivalent to 1,000 Mega Watts.
GWh – 1,000,000 kWh.
GHG – Greenhouse Gasses. A gas in the Earth which traps heat.
Geothermal Energy – Geothermal energy is heat derived within the sub-surface of the earth. Water and/or steam carry the geothermal energy to the Earth’s surface. Depending on its characteristics, geothermal energy can be used for heating and cooling purposes or be harnessed to generate clean electricity.
Greenhouse Gas Protocol – The Greenhouse Gas Protocol, commonly referred to as GHG, is the primary standard for emissions reporting. Developed by the World Resources Institute, the GHG protocol has become the corporate standard for carbon footprint calculation — making it easy for suppliers and customers to report the emissions of a specific site.
Green Energy – Clean energy from sources that only emit little or no greenhouse gases and have a low environmental impact. E.g. solar or wind.
Generators / Producers – Provide the Gas and Electricity through the pipes and wires.
GSP – Grid Supply Point. Grid Supply Point (GSP) refers to the point at which energy is taken from the National Grid transmission system, before being transported into a local distribution system.
GWP – Global Warming Potential.
HDD – Heating Degree Days.
HFO – Hydrofluoro-Olefins.
HFC – Refrigerants that are composed of Hydrogen, Fluorine and Carbon.
HH – Half Hourly Meters. A communication device connected to a meter, which a data collector can use to remotely collect half-hourly consumption data.
HHD – Half Hourly Data. Refers to the data received from a Half Hourly Meter. This half-hourly consumption data is normally presented to the customer in a spreadsheet, allowing them to review their average consumption over a set period.
HRSG – Heat Recovery Steam Regeneration.
HVAC – Heating, Ventilation and Air Conditioning.
HVDC – High Voltage Direct Current.
Heat Rate – The energy input per unit of time, normally expressed in kWh/h or BTU/h.
Heat Network – A heat network, sometimes called district heating, is a distribution system of insulated pipes that takes heat from a central source and delivers it to a number of domestic or non-domestic buildings.
Hydro Power – Hydropower, or hydroelectric power, is one of the oldest and largest sources of renewable energy, which uses the natural flow of moving water to generate electricity.
IGT – Independent Public Gas Transporter. An independent firm responsible for
maintaining regional gas supply network/s.
Insulator – A material used to stop, reduce or interrupt the flow of electricity.
ISO 14001 – A set of standards put forward by the International Organization for Standardization (ISO). Its purpose is to clarify the best practices for organizations that wish to reduce their environmental footprint by adopting an effective environmental management system (EMS).
ISO 5001 – ISO 5001 Energy management systems. Requirements with guidance for use, is an international standard created by the International Organization for Standardization (ISO). The standard specifies the requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy security, energy use and consumption.
Interconnectors – Physical pipes and wires between the UK and Europe to transport Gas and Electricity.
Joule – A unit of measurement for energy defined as the work done to produce one watt of power for one second.
kVA – A measure of apparent power, it tells you the total amount of power in use in a system. In a 100% efficient system kW = kVA. However electrical systems are never 100% efficient and therefore not all of the systems apparent power is being used for useful work output.
kW – Kilowatt. A standard unit of electrical power equal to one thousand watts, or to the energy consumption at a rate of 1000 Joules per second. A bill from your current supplier will show your usage in kWh.
kWh – Kilowatt Hour. Kilowatt-hour is the unit of energy used in the gas industry as a basis for setting charges.
Large Supply Point – Refers to a supply point in which the actual quantity consumption is equal to or exceeds 732,000 kWh, or 25,000 therms per annum.
LNG – Liquefied Natural Gas. Liquefied Natural Gas, or LNG, forms when natural gas is cooled to a temperature of -160°C at normal atmospheric pressure. This condenses the gas, making it easier to transport.
Load – Load refers to the amount of energy supplied to a specific supply point, or the amount of energy required by the electricity customer.
Load Management – Large electricity supply sites, which are flexible about when and how they use electricity, use load management to schedule their production patterns to take advantage of reductions in the price of pool electricity. Consumers that are able to manage their electricity load in line with the National Grid’s Triads could see sizeable reductions in the price they pay for energy.
LDZ – Local Distribution Zone. The Local Distribution Zones describes the geographic area in which a network of pipes deliver gas to most of the Customer sites in the area e.g. South Wales, London. This network may be connected to private networks owned IGTs.
LOA – Letter of Authority. This is a signed permission slip which allows us to deal with your account on your behalf.
Losses – The Electricity or Gas lost through by transportation through the Transmission and Distribution networks.
MPAN – Meter Point Administration Number. The industry’s reference for an Electricity meter’s location. Does not change when meters are changed. Not visible on the actual meter.
MPRN – Meter Point Reference Number. The industry’s reference for a Gas meter’s location. Does not change when meters are changed. Not visible on the actual meter.
MAQ – Maximum Annual Quantity. The Maximum Annual Quantity (MAQ) represents the total amount of natural gas to be delivered to a customer’s site during the contracted year.
MID – MID approved gas and electricity meters. MID approved instruments will have passed specific conformity assessment procedures and have MID markings which allow the instruments to be used in any EU member state. The aim of the directive is to create a single market in measuring instruments for the benefit of manufacturers and, ultimately, consumers across Europe. Any landlord of commercial, residential or industrial properties must ensure the meters they have on site are MID approved.
MSN – Meter Serial Number. The unique reference for each meter. Visible on the actual meter.
Maximum Demand – Maximum Demand refers to the peak energy usage (in kWh) of a single Half Hour cycle during a calendar month, or between two scheduled meter reads.
Megawatt – Electrical unit of power equal to one million watts. Standard measure of electric power plant generating capacity.
Meter – Means a meter which conforms to s17(1) of the Gas Act and is of an
appropriate type for registering the quantity of gas supplied;
MAM – Meter Asset Manager. This is defined in the Standard Conditions of Gas Supply Licence as a person or a class or description of persons possessing the expertise satisfactorily to design, install, commission, inspect, repair, alter, reposition, remove, renew and maintain the whole or part of the Supply Meter Installation.
Meter Point – This is the point where a meter is, or will be, connected to the gas distribution network.
MPAS – Meter Point Administration Service. The organisation responsible for assigning the Meter Point Administration Number to all electricity and gas supply points in the UK. For more information, visit www.mpas-online.co.uk.
Meter Serial Number – The Meter Serial Number is an identification number assigned to every gas and electricity meter point in the UK, across both corporate and domestic energy customers. The Meter Serial Number may contain a combination of both letters and numbers, and can normally be found stamped, ingrained or attached to the front of the meter box.
MCM – Million Cubic Meters. Million Cubic Meters is a unit of gas measurement, with 1 MCM equating to approximately 360,000 therms.
MOP – Meter Operator is a supplier who looks after the HH meter.
MWh – 1,000 kWh.
NBP – National Balancing Point. This refers to the point at which wholesale gas is traded within the UK.
NHH Meters – A meter where the reading is manually recorded and sent to the Electricity Supplier.
National Grid – National Grid own and manage the UK’s primary gas and electricity transmission systems. All electricity generated in the UK is transmitted to the National Grid before being transferred to the local distribution network. National Grid is responsible for transmitting electrical power from the generator to local distribution networks.
NTS – National Transmission System. The National Transmission System, or NTS, is a network of high-pressure gas pipelines supplying gas to around forty power stations and large industrial users from natural gas terminals. The National Grid owns the NTS, and is responsible for supplying gas to the gas distribution companies.
NHH – Non Half Hourly Meters. Non-Half Hourly Meters require the user, or their energy supplier, to manually read the device to obtain a meter read. Non-Half Hourly Meters are normally reserved for domestic users, or small business users.
Non-Daily Metered Supply Point – A Non-Daily Metered Supply Point is a Supply Point which is required to provide meter readings on a non-daily basis, e.g. monthly, quarterly or yearly basis.
Net Zero – This refers to achieving a balance between the amount of emissions and greenhouse gases emitted into the atmosphere and the amount extracted from the atmosphere.
Nuclear Energy – Nuclear energy comes from splitting atoms in a reactor to heat water into steam, turn a turbine and generate electricity. Nuclear energy has zero carbon emissions because reactors use uranium not fossil fuels.
Objection – This is the process by which the Old Supplier can object to the transfer and block it.
Off-Peak – The period during a day, week, month or year when the load being delivered by a gas system is not at or near the maximum volume deliverable by that system.
OFGEM – The Office of Gas Electricity Markets (OFGEM) is the independent government agency who regulates the onshore gas and electricity industries in Great Britain. They manage all areas of the Energy Sector including the Retail Market, Wholesale Market, Transmission Network, Distribution Network, Legislation and Licensing
Offtake – Gas or electricity removed from the network to meet customer demand.
PV – Photovoltaic. Solar panels use sunlight as a source of energy to generate direct current electricity.
P/kWh – This is the unit cost that energy is priced on Electricity and Gas Contracts.
PP10/11 Forms – Forms to be completed to claim relief against the main rates of CCL for schemes such as CCA or CHPQA. PP10 form is sent to HMRC and PP11 to the supplier.
Pass Through Charges – Pass Through Charges are items which may appear on a customer’s energy bill, covering the cost, if relevant, of any third party services involved in the energy supply chain.
Peak Demand – Peak Demand refers to the maximum demand for electricity placed on the National Grid on any given day or over any time period.
Percentage Day – Refers to the percentage of electricity used during the daytime versus the night-time. Suppliers use this information to generate and assign the customer profile.
Power Factor – Used to gauge how efficiently electricity is utilised across a site, particularly when using certain types of industrial equipment and machinery — which could reduce the capacity of the local network to supply power. DNOs often apply Power Factor charges to large consumers who use electricity inefficiently.
Qualifying Use Limit – The percentage of domestic use gas on a mixed use site, above which the entire supply is charged at the reduced rate.
Ratchet/Ratcheting – A ratchet is a commercial penalty charge applied to any daily metered supply point which exceeds the agreed daily capacity during the winter period (October to May). Ratcheting is used to deter large energy consumers against setting their daily capacity below what is actually required during the winter period.
Regulator – OFGEM is responsible for regulating the UK’s gas and electricity
industries. Energy regulators have the power to enforce legislation and regulations on market participants — helping to ensure a fair and competitive market for energy customers.
Renewable Energy Certificates – Renewable Energy Certificates, also known as RECs and ‘green certificates’, represent the power produced from internal energy projects, usually by large industrial businesses. RECs can be traded, bought or sold, and are separate to commodity electricity.
RO – Renewable Obligation. Renewable Obligation is the government’s primary initiative for the promotion of renewable energy practices. The programme is mandatory under the Climate Change Levy exemption scheme, and means that all electricity suppliers must contribute a certain amount of their electricity sales revenue from accredited renewable sources.
REGO – Renewable Energy Guarantees of Obligation. REGOs show electricity has been generated from renewable sources. Electricity suppliers use REGOs to show customers the renewable content of electricity they’ve supplied each year.
ROCs – Renewable Obligation Certificates
Renewable/Green Gas – Green gas (or biomethane) is made from biodegradable materials which can then be used in the same way as energy from fossil fuels – to heat your home or cook with. The biggest difference between green gas and traditional fossil fuel gas, is that biomethane is renewable and virtually carbon neutral, so it doesn’t contribute towards climate change. But this is extremely expensive (not very cost effective).
Renewable Energy – Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, rain, tides, waves, and geothermal heat. Although most renewable energy sources are sustainable, some are not. For example, some biomass sources are considered unsustainable at current rates of exploitation.
Reactive Power Charge – An additional charge by the Electricity Network in instances where there is inefficiency on site, resulting in wasted Electricity.
SECR – Streamlined Energy and Carbon Reporting was introduced in 2019, as legislation to replace the Carbon Reduction Commitment (CRC) Scheme. SECR requires obligated companies to report on their energy consumption and associated greenhouse gas emissions within their financial reporting for Companies House. Organisations will also need to report on any energy efficiency measures and state emissions with reference to an intensity metric.
SPID – Supply Point Identification Number. Water – Every business premises has a unique Supply Point Identifier to identify the water and/or sewerage supplies at the property. The Supply Point Identifier number is also known as a SPID number.
Serial Number – The manufacturer’s number stamped on each meter.
SIC – Service industry Code. Refers to the standard classification code for identifying the type of business conducted at a specific supply site.
Shipper – Gas Shippers buy gas directly from producers or importers and
contract with Gas Transporters to transport it through the Network.
Site – The specific geographical location at which energy is supplied to, and later consumed by, an energy customer.
Small Site Peak Daily Demand – The Small Site Peak Daily Demand is calculated using the sum of consumption for all small sites.
SME – Small and medium-size enterprise.
SMETS1 – Smart Meters installed before the purpose-built communication network was rolled-out. Service issues often recorded when moving from one Supplier to another.
SMETS2 – An improved Smart Meter that communicates with the communication network, which means the Smart functionality remains even if the Supplier changes.
SMP Buy – System Marginal Price (SMP) Buy is the highest price that gas was traded (buy or sell) by National Grid in its Network Code balancing role for delivery that gas day. An energy trading term.
SMP Sell – System Marginal Price Sell which is the lowest price that gas was traded (buy or sell) by National Grid in its Network Code for delivery that gas day.
Smart Meters – Smart meters provide customers and energy suppliers with accurate information on the amount of electricity and gas being used. Frequent capture of energy consumption data can be used to analyse energy performance, compare energy usage patterns and predict future business needs via an online management tool.
Supplier – An organisation licensed to supply gas or electricity to consumers.
SHQ – Supply Hour Quantity. Supply Hourly Quantity refers to the maximum hourly consumption of a given supply point.
SOQ – Supply Off-take Quantity. Supply Off-take Quantity equates to the maximum daily consumption of a given supply point.
Supply Point Address – This is the address at which the Supply Point is registered.
Smart Export Guarantee – Newly introduced scheme in 2020 which will require Electricity Suppliers to pay small-scale low-carbon Electricity generators for each kWh they generate.
Standing Charge – The daily charge you pay your supplier to cover some of their Fixed Costs.
Sub Metering – Metering installed to monitor energy consumption, typically for energy management or to apportion costs. Sub Meters can be installed on specific pieces of equipment or specific electrical circuits within a building.
TCFD – Task Force on Climate-related Financial Disclosures. Firms will be required to disclose climate-related financial information, ensuring they consider the risks and opportunities they face as a result of climate change.
TCR – The Targeted Charging Review has looked at how electricity network residual charges should be set, for both transmission and distribution.
TNUOS – Transmission Network Use of Systems – Charges that are collected by the Supplier and returned to the Transmission System Operator to cover the Transmission costs.
TSO – Transmission System operator – The organisation responsible for moving Gas and Electricity around the national Transmission Network.
Therms – A unit of energy measurement, often used alongside kWh. To calculate the equivalent value in kWh, multiply the number of therms by 29.3071.
Transformer – A device used to adjust the voltage of an electric current. Transformers can be used to increase or decrease the voltage of an electrical power supply.
Transmission – The transfer of a high-power electrical current from the UK’s power stations across the National Grid Company’s (NGC) nationwide grid system.
Transmission Network – The pipes and wires to move Gas and Electricity over long distances to the regional networks.
TUoS – Transmission Use of System (TUoS) are charges that are incurred when transmitting electrical power across the National Grid network. The TUoS rate is calculated by applying a rate charge to the TRIAD demand level.
Termination Process – An Energy Supplier’s stated period where formal notice should be served to end a contract arrangement. Typically, 30 to 90 days.
Third Party Costs – The additional charges that make up the delivered cost of energy, excluding the Wholesale Cost. Suppliers collect the charges from end users and pay them to the relevant party (e.g. the network operator).
Transportation Charge – The transportation charge is levied by the relevant Transporter and covers the cost of transporting gas through the relevant parts of the Gas Network. Transportation charges are calculated using three unique elements: capacity charge, commodity charge and site charge.
Triads – The National Grid uses Triads to calculate TUoS charges. A Triad is calculated by using the three maximum demand points of an electrical supply at half hourly intervals, before calculating the average total. Triad periods occur at peak times during the winter months, when the demand for electricity is at its highest.
UKETS – A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021.
Unidentified Gas – This is Gas left in the system that cannot be linked to an end user. The cost of paying for this Gas is shouldered by every other Gas user.
Unit Price – The price per unit of energy, calculated from three elements, including the wholesale energy price, infrastructure costs and the cost to serve.
Volume Tolerance – A contractual arrangement for the consumption allowed, below and above the contracted volume, often expressed as a %. Typically, 80%-120%.
W – Watt. A unit of electrical measurement equal to one ampere under a pressure of one volt.
Wastewater – Water that has been used in homes, industries, and businesses that is not for reuse unless it is treated.
Wholesale Costs – The cost of purchasing the Gas and Electricity on the traded commodity markets.
Wind Turbine – A wind turbine (Wind power) is a device that converts the kinetic energy of wind into electrical energy. Hundreds of thousands of large turbines, in installations known as wind farms, now generate over 650 gigawatts of power, with 60 GW added each year. They are an increasingly important source of intermittent renewable energy, and are used in many countries to lower energy costs and reduce reliance on fossil fuels.
Xoserve – This is the agency owned by transporters to administer the processes that govern the gas supply chain. They operate systems that register each customer, with each meter and their supplier.